Osborne: Creating public sector jobs 'doesn't work'

The Conservative government won't seek to lower the unemployment rate by creating "artificial" public sector jobs, which ended up destroying employment as public spending spiraled out of control, says George Osborne.

Chancellor of the Exchequer George Osborne chats with a docker. Credit: Chris Radburn/PA Wire

"You end up with more people unemployed instead of less. Then the politicians who make these guarantees get into a panic. So unemployed people are pushed on to sickness benefits to hide the real numbers," he said.